New Found Gold Corp V.NFG

Agnico paid $13.5 B for Kirkland Lake

[nozzpack]

KL had 20 million ounces in M & I categories an an average grade of 1.03 grams per ton.

A premium is always paid for higher grades as mining costs are inversely related to grade among peers.

So, 10 million ounces above 10 grams per ton or so should get us the same amount as KL

[Evenkeel123]

So what?  No 43-101 takes away any chance of selling it profitably.   The thrill of the drill is the killer here.   EK

[eldreco]

No, EK...Snidely was correct when he said that by publishing a N43-101 it rather fixes the perception of what a company has to the market...even though - for all the cost to produce one - they are essentially redundent by the time they publish!  With NFG, at the rate that the company is making new discoveries (and upping the body count in terms of ounces), a 43-101 now would literally be

[Evenkeel123]

Eldrico, Wouldn't be nice if they in fact would do that?  Perhaps you should send that in as a suggestion, mentioning Skeena, and see what you get back in response. EK

[fredo1]

I think you are wrong. A resource report does not set a ceiling but rather a floor on value. It also shows drilling productivity, ie, are we finding lots of oz per $ spent. If we knew the tonnage and grade to date at Queenie, I guarantee the stock would be much higher.

[Retiredgeo]

Not necessarily so.  Denis Laviolette has commented on one of his Crashlabs podcasts that resource estimates are share price killers.  Furthermore, a buyer will usually throw out the junior's data and conduct their own. Nothing is as simple as it seems!

[nozzpack]

" Furthermore, a buyer will usually throw out the junior's data and conduct their own." Not data but mainly the interpolation parameters of the Krieging estimation model. There is no simple extrapolation model for estimating resource levels at depth. An approximate proxy would be that the vertically integrated resource level down to 1000 m of depth would be 10 times that of the

[Retiredgeo]

With the exception of shallow open pits at Keats West and K2 the mining at Appleton North will be by underground methods (just like at Fosterville).  Definition drilling will block out the veins probably in 10-15 m intervals.  There will be no giant open pit.  Wrong type of deposit!  Try Nevada. By data I meant resources and reserves and how they were calculated. 

[Dixiedee]

Eric Sprott commented on one of his videos that the data from a resevse estimate doesn't mean much to the majors they do their own before completing an offer anyway 

[JRafflesUK]

Appleton North will be by underground methods (just like at Fosterville). I understannd that the Fosterville underground mining method is via trucks driving down inclines, rather than shafts to the ore body. These Fosterville inclines are quite long in order to reach the high grade phoenix and swan zones. However, if NFG inclines were limited to 400m, then the mining operations would be

[Retiredgeo]

The upper levels of the KMZ are ideal for a ramp style underground mine.  Expect it when you hear of it.